Hello.
Business model: is it a phenomenon or metaphor?
Foss NJ, Saebi T (2018) suggest that business model is a phenomenon so (1) it should be measured (but scholars haven't develop the relevant scale unfortunately) and (2) the measurable category should be placed in casual models as an explanation, explained, mediating or moderating variable.
Another interpretation is that the business model is a metaphor that shows: (1) what should be a unit analysis in the research and (2) how to investigate the unit of analysis. The interpretation is an analogy to the famous "value-in-use is co-created in interactions" metaphor suggested by Grönroos Ch, Strandvik T., Heinonen K. (2015).
Do you know the articles in which their authors declare explicitly: "this is a phenomenon", "we can measure it" or "this is metaphor"? or maybe it is unclear in the literature? maybe the differentiation is not important for the research?
Foss NJ, Saebi T (2018) Business models and business model innovation: Between wicked and paradigmatic problems. Long Range Planning 51, 9-21.
Grönroos Ch, Strandvik T., Heinonen K. (2015) Value co-creation. Critical Reflections in: The Nordic School -Service Marketing and Management for the Future (ed Gummerus J., von Koskull C) CERS, Hanken School of Economics, 69-82.
Richard Kleczek
Dear Ryszard,
Business models are neither metaphors or phenomenon -- they as just toys produced for adults to play with (like toy railroads with railways, locomotives, semaphores and wagons). You use the established business and then simply it by presenting a limited number of elements and their possible relationship based on historical data. Unfortunately, no top management journal will accept a paper which presents business modelling in such a way -- as a part of the global toy industry.
There are more useful organizational models (see Burton and Obel "Strategic Organizatinal Diagnosis and Design --
https://www.springer.com/gp/book/9781402076848
that measure some "soft" elements of an organization and are looking for fits and misfits of elements, but such instruments and software do not pretend to be labelled as "business models".
In real life no business models but stretches and business prototypes are developed for both new businesses and the businesses that need major restructuring. Such sketches and prototypes are initial DCF models, initial (transformed) design of business operations, action plans and the initial (adjusted) organizational structures.
Last but not least -- the key question most executives wish to get from business models is "how much should I spent to increase my sales by X%%?" If your business model provides a sort of answer to that question, it is a workable model.
Very bests,
Igor Gurkov
Business model guides the business in generating revenues, ranging costs, and generating profits. Furthermore helps the firm in formulating a strategy to compete in the marketplace. The value of the firm in the market determines the success of the model. Thanks.
I think you may find Baden-Fuller and Morgan (2010) "Business Models as Models" in Long Range Planning ( Article Business Models as Models
) to be a useful read in answer to your question.It's the introduction to an excellent special issue of LRP on business models (Vol 32, Issues 2-3): https://www.sciencedirect.com/journal/long-range-planning/vol/43/issue/2. Some of the work you've noted has advanced some of these discussions, but the debate continues and I think you'll gain value from going back to this special issue.
Dear Ryszard,
Business models are neither metaphors or phenomenon -- they as just toys produced for adults to play with (like toy railroads with railways, locomotives, semaphores and wagons). You use the established business and then simply it by presenting a limited number of elements and their possible relationship based on historical data. Unfortunately, no top management journal will accept a paper which presents business modelling in such a way -- as a part of the global toy industry.
There are more useful organizational models (see Burton and Obel "Strategic Organizatinal Diagnosis and Design --
https://www.springer.com/gp/book/9781402076848
that measure some "soft" elements of an organization and are looking for fits and misfits of elements, but such instruments and software do not pretend to be labelled as "business models".
In real life no business models but stretches and business prototypes are developed for both new businesses and the businesses that need major restructuring. Such sketches and prototypes are initial DCF models, initial (transformed) design of business operations, action plans and the initial (adjusted) organizational structures.
Last but not least -- the key question most executives wish to get from business models is "how much should I spent to increase my sales by X%%?" If your business model provides a sort of answer to that question, it is a workable model.
Very bests,
Igor Gurkov
Simon Ford, thanks for your contribution and suggested article.
It seems to me that this is an example (despite the many advantages of the article) as scientists try to follow what businessmen say about business and how they are late with it. A positive aspect is that new knowledge flows from business to academy.
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